Brexit Panic Is Overblown; Charts Reveal Little New

European markets are now in turmoil following Brexit vote but long-term charts show little technical change.

By

Michael Kahn

June 28, 2016

First, let me say that I think there will be a period of gyrations and pain as global markets settle in with the United Kingdom’s decision to leave the European Union. However, from what I have seen so far in the stock market and a few other economically attuned markets the Brexit panic is way overblown.

For example, European bourses as a group have been in decline for more than a year. The Stoxx 50 index of blue chips stocks from across the region peaked in April 2015 and through Monday’s trading was down more than 26% (see...